Hello. Welcome to countdown. Anna is off today. Bloomberg reporters are standing by across the world and ready to deliver the stories that will drive your day. Hans nichols is in berlin with the details on facebookss biggest purchase ever. I we will take a look at the manufacturing report from china. Ryan chilcote is tracking the evolving situation in ukraine as a temporary truce stops violent clashes for now. For these exclusive interviews on the move. We will look at the impact of the u. K. Flights with one of the Biggest Insurance Companies in europe. And a company that invented color tv, it the color technicolor ceo, frederick rose, joins us later. A 19 facebook with billion deal to buy a service that costs 1. Hans, what did Mark Zuckerberg see in whatsapp . When his eye was user growth and user engagement. When million users per day. Is the engagement. 70 of the users use it everyday. For the deal. Stock, 4 billion in cash, 3 billion in restricted stock. This company was founded five years ago. Only 55 employees. It had more users than twitters 240 million. Take a look at what this book is using paying for each user. They boughtm instagram and viper. Acquisition was instagram. Take a look at this. Microsofts acquisition of skype was 8. 5 billion. Compare that to 19 billion. Zuckerberg says he does not want to this. S when he sees is a potential for growth. It will go worldwide in the next two years. It could reach billions of people. That is valuable. Our focus will remain on connecting more people and increasing engagement. Over the long term, we look forward to seeing what the team can do to build a really great business. Only 32 engineers at the company. Marketing. Pr or at 300e dollars for each million users and facebook is paying as much as 42. , 19 an amazing price billion. Who is making money out of this . Im guessing a few billionaires will be made out of this deal. Cofounderse came to the u. S. In ukraine when he was 16. Each employee is worth 340 million. They made out like bandits. The investment is now worth close to 3 billion. Nichols inhans berlin. We had key Economic Data overnight on two of the biggest economies in asia. Japan came out with trade data. Engles is in hong kong. Good morning. That is right. , it wasntshort really trade deficit for japan. Doubled theut number compared to december. We have seen record deficit after record deficit. There are two parts to the equation. At the same time, it is also because of the week urgency. It is a bit counterintuitive. It makes a lot of these energy or expensive,an especially now that it is winter. That beats into that inflation that japan does not need. Wagest that together with. Dixon in less than a few months. To try to over look and overcome. China, theabout flash pmi manufacturing number, number of contraction. What is the take away . 48. 3 is much lower than the previous one. 49. 5. It is an initial number. Official numbers come out in about a weeks time. You do have one week of the Chinese New Year at the start of the month. A lot of economists are worried about this one. It is too low below the threshold of 50. Inthank you, david engles hong kong. Review. Nterest rate in Jonathan Ferro is here with more on those items. We had a unanimous decision i read the minutes. Nothing unanimous about the conversations going on. 10 billion at tapering every single month. Is noe been told there preset course, but several people want to make it a clear perception that it will be 10 billion a month. They say economic recovery would lead a substantial deviation to change path. Q you said, there is a very interesting conversation on Interest Rates. Side, there is a very interesting conversation on Interest Rates. We know that individuals at the fed would like rates to rise at the end of the year. Definitely want to talk about Forward Guidance. Do they go down the qualitative avenue . Right now they are on the quantitive avenue. Do they moveure, away from tying it to a bigger one . What is that debate . The take away is that theres concern about the inflation. There is a lot of concern about the slack in the labor markets. All down to is janet. She was head of the committee on communication. She rushed forward Forward Guidance. It is on her. It should be consensus is difficult. It is. Thank you. In ukraine, president yanukovych declared a truce with the Opposition Leaders. Ryan chilcote is here with us. Lets begin with what will happen next. Eu finance ministers meet today. What measures could come out of that meeting . We have the Foreign Ministers going. The truce means the government plans to assault independent square and take it back has been shelved and the talks will begin. They were all going to sit down and president yanukovych separately there will sit down with opposition before they go back to brussels for a crisis meeting. In the afternoon, we will have president yanukovych meeting with the leaders of the opposition. The talks are very much underway. Happened in the last 24 hours. Us. Briefly, sum up for a right totary has search, detain, and shoot ukrainians. The Security Services said that weapons and ammunition was being stolen from stockpiles around the country. Theyre going to put a stop to it. Whether that is true or not, we do not know. Allegation that is happening is in itself rather alarming. The president has replaced his defense minister with the head of the navy. Instability is spreading throughout the country, particularly in the region west of the country. One region declared itself autonomous. In another, the protesters took the Regional Governor hostage. He wouldnt disavow his allegiance. He was handcuffed. Ukrainian assets continue to slide. The biggest selloff ever in the countrys 25 year history. When billiondollar of notes do this year. Billion dollar of notes due this year. Thank you. We will focus on japan and china and kick up with the latest report on trade and manufacturing. Countdown. Welcome back to countdown. To countdown. I am mark barton. A company has Just Announced it has a new chief executive officer. His name is david cole. He was the chief risk officer at swiss re before this announcement. The Company Announcing profitability for the Fourth Quarter. 1. 2 billion. Has been the big news. David cole has been named as the new group chief financial officer. Meanwhile, it europes Biggest Airline says its news plan is picking up speed. Jobss cut more than 7000 since 2011. Says he isxecutive committed to increasing profits this year, as well as reducing debt. He is the man in charge. He is the man who is been given the opportunity to turn around this big airline. Caroline spoke to the chief executive officer in paris. France has been more severely impacted by that economic environment and by slightly more difficult revenues. France, we launched in september adjusted plan to restructure the network and to target the recovery for this network in the coming years. Debt byhave to use our 4. 5 billion euroes. Euros. Already in 2013, our cash consequences and improved. Posted a record trade deficit. China says manufacturing slowed. Lets get more on these reports from lena. Thank you for joining us. China is trying to juggle a lot of balls, isnt it . It is trying to reduce the capacity and cut pollution. It is trying to prevent a surge into a from spiraling financial crisis. How is it doing with juggling . It is a draconian task. What we have seen from the andres is the indication the bloodline of the investment lowest thehe slowest pace in 10 years. They have succeeded from moving and the public decoration that has field the growth in recent years. At the same time, balancing that against the needs to create assisting enough of the economy so you can push through with reforms that could improve sustainability. It is actually difficult. It is. It comes at a time when the world ready is suffering from low inflation. How is that when the play out . Precisely. Not only is up publicsector down, but this is driving concerns about the inability of debt in the local government, but also the corporate spear. Sphere. It is driving the slowdown and creating concern about whether chana can manage in an orderly way. In the best Case Scenario come step change down in chinese growth and in the middle of the week inflation environment will increase the concerns. It is ahead of the g20. It is taking place in ostrow you. In japan it is taking place in australia. Japan, the surging costs, willie d rail plans to have sustainable economic recovery in japan . Plans to haveail sustainable economic recovery in japan . It was difficult for the bank of japan to pursue further quantitative easing unless there was some merit coming from a. Tronger mistake demand until we see that, the concern is that the artificial inflation to push through the weakness will probably undermine the credibility. Why has it been so slow . Japaneselot of exporters move their production overseas. Has it been slower than maybe you thought it would . That is a good point. Much of those functions are happening outside the borders of japan. Theres a weak exchange rate. Key wordrobably the here is that it is not the problem for japan. It is a problem for emerging markets as we have seen in recent weeks. What you do have still is a global race of competitive evaluation. It is not really functioning when Global Demand is weak. It is not a substitute. There you go. Lena komileva, a chief economist. And whathe fed minutes they had to tell us about the future of Forward Guidance in the u. S. Welcome back to countdown. I am mark barton. My guest is lena komileva. The fed has spoken. It looks like they are looking to truck Forward Guidance. Think about the approach where you tie into a figure based on unemployment or do you go the more quality of qu alitative route . What do you think . Absolutely. The question is wide open. The fed isar is that preparing to draw away the rules of the fed and throw away the rulebook. It. S confidence about rule that istaylor still very instructive. It indicates the level of the momentum and the strength the u. S. Economy. When it is still too high for them to sustain nominal rates of borrowing costs, it is not a surprise that the fed is managing. Towards we talked about deflationary worries. There are a number of comments that were aired within the minutes. They talked about too low inflation. Is it time within the fed statements to formalize it saying that it would keep rates low if inflation persistently stayed well below our two percent target as we know it . Half of its target . Around one percent, isnt it . That is right. It is moving towards a more balanced approach. The focus is on the inflation outlook. There appears to be asymmetric approach that would link the guidance for the outlook for at the same time, asset purchases soon to be linked to general thinking about the capacity and the economy. That is the other key point that we were looking for and how the fed is going to transition on Forward Guidance. 6. 5 for the unemployment rate, but also how the fed is going to be for potential to have some of the recent weakness in the u. S. Labor and housing data. You will be staying with us. A chiefileva, economist. She will be with us and the next section. Has it been able to overcome its troubles in asia . Do more with the companys latest Earnings Report. I am mark barton. These are the Bloomberg Top headlines. Ukrainian president yanukovych has declared a truce with Opposition Leaders. Governmentsays the will try to stop the bloodshed. The Federal Reserve has backed away from his commitment to consider raising Interest Rates for unemployment falling below a percentage. They said the joblessness is falling faster than expected here it might soon be appropriate to revise Interest Rate guidance. The ecb is looking for action to spur growth and it could weaken the currency. That is according to New York University rabin he roubini. You need to have some credibility of easing. There could be Stronger Economic growth. Welcome back to countdown. I am mark barton. The time in london is 6 31. Anna is off today. Danone is the biggest yogurt maker. It is returning its earnings. It has declined in more than a decade. It hurt baby food sales in age a. The shares falling to 2. 78 euros. That compares with the average. They missed analyst estimates. Profits decline for the first time in more than a decade. It expects this year will be marked by a sluggish consumer demand. Volatilityange rate in emerging markets. It is baby food business in which 2012 a kgb did a percentage of its sales. It did turn out to be a false alarm. Down with its it was fined for fixing prices of infant formulas. Big news from danone, the worlds biggest yogurt maker. Lets get the take away. We go to david tweed. In has been quite a year, hasnt it . What happened and what is danone doing to mitigate the effects . Think it is interesting to watch what is happening. His is a company that is really fighting back. You have recap what has happened. They put out a statement saying that they talk thought some there wasucts an asian wide recall. They found out that this was a complete false alarm. At the moment, danone is suing. What it is doing to fight back is trying to rebuild its position in some of those asian markets and in particular, china. It has does old double its stake in a company. Euros to raise its stake to 10 . What they have got with the Chinese Company is a joint venture to make yogurt and distribute they yogurt to a fastgrowing market in china. It is interesting to see what this empathy, danone company, danone is doing. Medical unit what would be the reasoning behind such a move . I thought we might get some announcement about that today. It is a medical unit that they 2002 412 billion euros. The speculation is that they might sell it. There is a german medical happening. The reason they might sell the unit is that they can refocus everything onto the core business. The core business is the straight gary products. Products like yogurt that we have been talking about. We will see if they will go ahead and sell this unit. The unit makes a Nutritional Supplement and perhaps it doesnt need to focus on that area. Iswant to find out what going to happen. We should hear something maybe a little bit later. Tweed. K you, david well get more news. Tokyo with us from the details. Is this going to hold back our economics . The trade deficit was much more than we had expected. At 27 billion that is about the size of a [indiscernible] economy. There are lot of factors and influences. The Chinese New Year, for example here at the japanese raising their sales tax. People are importing a lot more luxury cars. Is energyory here imports. Japan still has not gotten any of the Nuclear Power plants online. Theres no real timeline for them to start again. If that continues as it looks willit is going to, these continue. Eventually that will create Serious Problems for the government if they cannot see to decreased japans dependency. Over time, this is definitely going to provide concern that it would not be succeeding. Thank you. Making sense of that. We have got to move on. Lena is still here. Want to talk about the record for 2013. Lena komileva is here. Data out of the eurozone. It should show a slight improvement. Your message is quite clear that it is still a contractionary recovery. It is indeed. Absolutely. Is that thee recovery is underway, but the reality is that there is this a growing gap. Here is that although the eurozone is managing this wrong this recovery since the crisis began back in 2011, it is not sufficient enough to compensate for the structural issues that are still depressing on the ground and is seen across a variety of indicators. Records are being seen. Finances and the rising debt across the periphery, none of that has disappeared. The momentum is not Strong Enough to inflate the eurozone economists. We need more action from the ecb next month . Absolutely. More. B has got to do of course they have got to do more. Hat is the chorus they have been saying that you have got to do more. Why are they continually holding off further action . There is perhaps some sentiment. Toe gotten times underhand consider the appropriate timing and format of action whether it will be rates or some quantitative easing. What i think is quite obvious that the ecb cannot really move away from the need of easing. Strength suggest that the eurozone is winning the global deflationary war. Though your economy is most at markets. Ss the merging structurally, the u. S. Exporting less of its growth to the rest of the world. In financial terms there is as is themismatch now falling yields and the rising tide. It is juxtaposed against real improvement in these economies on the ground. 30 seconds on the bank of england. One paragraph. One full paragraph on the Forward Guidance. Daysoke to david if you ago. He suggested more of the debate was taking place. Is he telling us everything . One paragraph. Are they hiding stuff . Shouldnt the mitts include all the debates . The minutes include all the debates . It doesnt have to be as transparent and clear as we would like it to be. Do you agree with that . Shouldnt it be more open and transparent . Forget we have too much of that . Or did we have too much of that . The trend is still positive. Probably does need more power. Control is not a bad thing. Will you be downloading the whatsapp . Good god, i have no idea what that is. [laughter] thank you to lena komileva. What about the skis . With a priceone tag of 10,000 dollars. Yes, 10,000 for a pair of skis. Time for todays company news. They